Scottish Borrowers ‘Hit Hard’ By Rising Levels Of Debt
Keywords: debt, consolidation, loans, credit, finance, secured, personal
Consumers in Scotland are increasingly struggling with debt, new figures indicate.
In research released by the Institute of Chartered Accountants of Scotland, the lowest-earning members of society - those in their early 20s and people of retirement age - are the most likely to run up unmanageable levels of debt via avenues of borrowing such as secured loans and credit cards. The news comes as findings show that the number of people filing for bankruptcy in both the under-25 and over-65 age brackets has doubled over the last two years.
In 2004-05, 79 Scottish people under the age of 25 became bankrupt - however this has now risen to 157. Meanwhile, 105 over-65s filed for this type of insolvency over the course of 2006-07, in comparison to the 46 noted two years ago. As a result it was suggested that the large rise in personal debt difficulties witnessed across the country is having a “disproportionate effect” on those people who make the least amount of money, which consequently could see them have the greatest struggles in paying back loans and other types of borrowing.
Commenting on the study, Anne Bryce, director of insolvency at the institute, said: “There are underlying reasons to explain why these vulnerable groups are being hit hard. More students are taking on loans and the rising cost of getting a foot on the property ladder means that under-25s are finding it harder than ever to stay afloat. For the over-65s, there is an element of duty to their debt”.
“I am hearing more and more that parents are remortgaging in retirement to help their kids to buy a house or to bail them out of financial trouble. For less well-off pensioners, the more aggressive pursuit of council tax arrears by local authorities and the increasing cost of gas and electricity is forcing some into bankruptcy.”
She added that the “irresponsible” provision of credit to unsuitable applicants and aggressive advertising by “unregulated debt consolidation companies” is also helping to contribute to increasing debt difficulties.
For those who find they are experiencing trouble making repayments and handling their debts, a bad credit loan could be an alternative to filing for bankruptcy as they look to get back on their financial feet. And such a move could be particularly helpful for those finding that previous damage to their credit history has curtailed their access to mainstream avenues of borrowing.
However, as with any form of borrowing, consumers opting for such a loan should look to keep up with demands for payment, otherwise they could find their debt problems worsening. The warning comes as research carried out by moneysupermarket reveals that a number of loan lenders charge those consumers who miss a mortgage repayment, have cheques returned or go into arrears.
In addition, those looking for debt counselling from their credit provider were also shown to have been hit with various fees, furthering the money management difficulties felt by the most financially-vulnerable members of society. Louise Cuming, head of mortgages for the price comparison website, claimed that those falling behind with repayments “can expect to face some highly punitive and unjust charges”.
Mark Dawson writes for the Loan Arrangers. Where visitors can compare cheap loans online, and apply for debt consolidation loans. To read more articles from Mark go to news.loan-arrangers.co.uk
Previous Articles Highlighter:
Avoiding Sour Negotiations In Real Estate (1)
This does not happen often, but some people will threaten termination as a bargaining technique. I would not advise using this technique, but it is good to know how to deal with it because the typical natural reaction is to tell them to buzz off.
How To Be A Mortgage Expert: Use A Title (2)
This is an article about mortgage marketing and he is getting mentioned and free publicity from it. What is the Better Business Bureau? It is a business that is out to make money.
Credit Score: True Or False (3)
Inaccurate information can be taken off of your credit report. True or False? True. You are permitted to dispute inaccurate information by notifying the credit bureau reporting the information.
Consumers 'Switch Off' When It Comes To Financial Planning (4)
"With retirement income, the difference between 'what people want' and 'what people will get' is very different and it's essential that individuals face up to their needs in retirement." Mr Brown added that because of "current trends" such as increasing life expectancy, it is crucial that Britons take the time to begin planning for their financial future "as we are reaching a point where some people will spend almost as long in retirement as they will in work".
FICO Score 101 (5)
Credit Utilization 30% Credit Utilization refers to the ratio of the amount you currently owe to your total credit limit. If all your credit cards are fully maxed out, your score will be lower.
Home Loan Basics (6)
When you take the mortgage loan, the lender will hold the title to the property until the debt is paid off. If you cannot or do not make the required payments on the property, the lender may sell the property in order to recoup its money.
How To Dispute Your Credit Report (7)
Box 1000 Chester, PA 19022 1-800-888-4213 Equifax P.O. Box 740241 Atlanta, GA 30374-0241 1-800-997-2493 Experian P.O. Box 2104 Allen, TX 75013-2104 1-888-397-3742 Peter Kenny is a writer for Finance 123.
Stop Credit Card Debt And Get Your Finances In Order (8)
If you want a shot at becoming financially successful there is one thing you must do. Get rid of high interest credit card debt. Cut up all your cards.
How To Train Your Eye For Foreclosure Investing (9)
In other words, those properties belong to public access area are expected to be of high price compared to not. Properties start to drop in value when they get closer to highways and large commercial and industrial areas.
The Top 5 Ways To Build Your Credit Score (10)
Having credit cards can only benefit your credit rating if you pay the minimum amount required, pay it on time, and don't spend beyond your credit limit. It's like exercise.
Choosing A Good Financial Recruitment Agency (11)
In 2007 a lot of the big banks have cut back on top recruitment of top level staff, an effect that has filtered down to all steps on the financial career ladder.
Texas Homestead Exemption (12)
This is not required if you are age 65 or older. The homestead may also be a separate structure such as a condo or manufacture home that is located on leased land, as long as the individual in the home owns it.
How Is A FICO Credit Score Determined? (13)
This inquiry will appear on your credit report. Multiple inquiries within a relatively short period of time have a negative effect on your FICO score, especially if these are credit card inquiries.
Money Saving Tips: Knowing Where To Begin (14)
Saving resources isn't as complex as you might consider. It is just a matter of self-discipline and setting goal as effective as possible. The foremost greater hurdle that people face when trying to save money is to systematize their finances.
Rewards Credit Cards Are My Best Friend (15)
If you are going to have a credit card, why not get one that will give you a little bit back for the money you spent with your credit card?
Stay At Home Moms - Dare Yourself To Save Money (16)
That is, for a period of time (anywhere from a month to a year), you spend no money on things that are not necessary. Groceries, rent, mortgage, utilities and such are fine, but buying new clothes that aren't needed would not be.
What If I Cannot Make A Loan Payment? (17)
The most important thing to do is to contact the lender as soon as you know that you are not going to be able to make the payment. If you are certain that you cannot make the loan payment, calling the lender will show them that you are not unaware of the payment, and it will also show them that you are not trying to ignore them.
How To Raise The Limits On Your Credit Cards (18)
Second option: There are some occasions when you are in need of something that will cause you to charge over your limit. In this case, raising your credit limit is a must if you want to avoid spending money on penalties and keep from decreasing your credit score.
Eliminate Debt? The Unforgiving Truth Behind Paying Off Your Personal Debt! (19)
Worrying about you Rep: This is a hard one to swallow but if you are worried about people learning you are struggling with debt then something is wrong. This is great motivating factor though and should be used as such to get out of debt.
Should You Prefer Your Home Equity Line Of Credit Or Your Credit Card? (20)
Though transferring to a credit card may not always be the best solution, it has helped several people save money on their home loan. Why? Credit cards have the advantage over home equity because they have lower interest rates.
Newer Articles Highlighter:
Selling Homes By Owner: Setting Up Your Website (1)
But they don't address the root of the problem. Your home has to get discovered before any prospective buyer purposefully comes to view it. You can advertise in the paper...and pay a lot of money for very little space.
Why Have A Realtor? (2)
It is so much simpler to have someone with experience to do all this for you rather than guess if your requests are reasonable. And finally, a Realtor will guide you through the closing process with all kinds of help like referrals to good inspectors and lenders as well as making sure the process goes as smooth as possible without any worries from the Buyer.
What Is A Credit Score? (3)
They have paid bills on time, kept balances low, maintained credit for a longer period of time, and kept applications to a minimum. A consumer with a high score will find it easier to be approved for new loans and applications.
Best Ways To Improve Your Credit Score (4)
Late payments have the biggest affect on your score. If you discover that you cannot make a payment, it is best to make arrangements with your creditor or lender as soon as possible.
Surge In Debt Noted Among Young Homeowners (5)
In addition, such consumers could be set for a tougher financial future as rising property costs mean they are putting less money away for retirement. Just over a quarter (26 per cent) of respondents were making contributions into a pension scheme in 1995, however over the course of the following ten years this proportion had fallen to 13 per cent.
How Do I Calculate Finance Charges? (6)
Step 1: Find the amount of interest paid. Interest: 'I' = PRT = 1500 x 0.12 x 2 = $360 Step 2: Find the total amount to be paid back.
Brits Look To Treat Themselves After Reaching 'Financial Targets' (7)
Meanwhile, consumers looking to fund their life goals, whether their spending intentions range are purchasing a car or travelling the world, may well wish to take out a cheap personal loan to help them realise their dreams.
Relying Too Much On Credit Can 'Deepen Debt Difficulties' (8)
That can be quite a small thing like getting a bigger gas bill than you expected and it puts your finances out. Unfortunately often what happens is once people start to struggle they try and do their best but often try and manage that by using more credit and it can go up and up and up." The representative's comments come after a rise in those struggling to manage their money has been witnessed throughout the country.
AI: Alpha And Index Funds (9)
Even if you don't subscribe to this theory, you might find it an interesting exercise to review the alphas -- every investment has one -- of your current holdings. They will tell you something about the correlation and diversification of your portfolio.
Mobile Bills Could Cause 'Unpleasant Shock' For Tourists (10)
"Although the EU ruling is moving mobile phone costs in the right direction, making phone calls when overseas can be very expensive. Not only that but operators can still charge what they want for any country outside Europe.
People Need To Be 'Tax Savvy' With Their Finances (11)
Keywords: brits, need, to, be tax, aware, finance, credit, loans, savings Consumers across the country could be placing unnecessary financial burdens upon themselves and their family by not taking full advantage of the tax breaks available to them, it has been suggested.
Brits Need 'Control Of Financial Affairs' (12)
For those worried they are not in a position to put a sufficient amount of money away for retirement, a debt consolidation loan could well be an advisable option as a means of getting on their financial feet.
Mortgage Marketing Techniques - Generating Mortage Leads (13)
Shane Brooks is a hard nosed business man that doesn't take kindly to competition. His hard hitting no nonsense marketing techniques constantly makes waves for his competitors regardless of the market he is focusing on.
Car Buyers 'Should Take Time' When Purchasing (14)
"When exploring the market for your new car, remember the financial outlay is high, so make sure you ask for a test drive - many people don't. If you're not a car expert, take a knowledgeable friend along with you.
New Financial Advisory Service Launched In North Of England (15)
Mr Blunkett and Ms Green added that such moves would help loan lenders and other financial firms "fulfill a significant social responsibility" to the poorer sectors of society. Steve Smith writes for the 1 Stop Finance Shop where you can apply online for debt consolidation loans.
Financial Aid: Beware Of Scholarship Scams (16)
College is expensive, and financing a college education can be frustrating even without the shysters. That being said, money is available - there are thousands of legitimate scholarships out there.
Consumers Should Keep 'Close Eye' On Credit File (17)
He added that those taking out a loan should take the time to ensure that they are aware of the full terms of their borrowing arrangement. Abbi Rouse writes for AllAboutLoans.co.uk, an online loans comparison site, visit us today for information on all loan topics including secured loans UK applications and home loans from all leading UK providers.
Cheapest Car Insurance -Tips To Help You Find The Cheapest Car Insurance Quotes (18)
Concentrate on good driving and don't use cell phones while you're driving. Even a hands-free phone takes your mind off the road. Many insurers offer a student good grade discount for good academic records and resident student discounts for those students who live away from home.
Can Consumer Credit Counseling Help Avoid Foreclosure? (19)
And even then, it would be a wise idea to check your credit report on a monthly basis to make sure there is nothing there that you are not already aware of.
How To Buy A Home After Foreclosure (20)
Everyone has unforeseen events that come up, but being ready for them is what can change the outcome. Saving for a down payment on a home will not only help a borrower to obtain a mortgage and a lower interest rate, but can also alleviate anxiety when unexpected events occur.
Permalink to Scottish Borrowers ‘Hit Hard’ By Rising Levels Of Debt